Princeton voices opposition to proposed funding cuts

In a show of solidarity, dozens from the Princeton community travel to Columbus on April 16, to protest proposed funding cuts. Among them were, from left: Director of Secondary Schools William Sprankles; Rick Pulson of the PSSA union and a maintenance worker; Dana Zinnecker, a media professional and member of PSSA; Interim Superintendent Ed Theroux; teacher and PACE president Gretchen Tash; and Dave Martin, a teacher and PACE vice president.(Photo: Thanks to William Sprankles)

They came by busload and carful, traveling nearly 100 miles to raise the volume against a school funding proposal that has already created hardship, and could cripple their school district.

The Princeton City Schools community, including incoming and interim superintendents, school administrators, staff, teachers and union leaders, as well as members of the six municipalities that make up the 6,096-student district, traveled to Columbus April 16 to testify against proposed legislation and tell state officials what they want and need.

It’s part of the push-back to the budget introduced April 14 by House Republicans. The proposal offers more overall money to schools – an extra $179 million compared with the plan Gov. John Kasich offered in the winter. House Republicans agreed with Kasich that the state should start phasing out money districts have received for years as a reimbursement for the discontinued tangible personal property tax, known as TPP.

The end result is 93 districts would end up with less state funding over the two-year life of the budget.

Princeton School Board Member Steve Moore, Interim Superintendent Ed Theroux and Sharonville Mayor Kevin Hardman testified to the impact that would have on the district, and called for legislation that would make the school district whole.

As of the current school year, Princeton lost $8 million of the $24 million TPP reimbursement the district had received.

Additionally, Princeton passed an operating levy in 2012, and made cuts to programs, staff and services.

The district can’t absorb much more, Moore said.

“We know the impact of this decision,” he said in Columbus, “and we hope and pray you do, too.”

“Next year, when we crunch our numbers, we’re scheduled to lose $528,000,” Theroux said later. “The following year we will lose $1.2 million. We will lose $1.7 million each year after that.

“It will continue until it’s all gone,” Theroux said.

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Educators dispute some legislators’ claim that TPP reimbursement was intended as a temporary way help school districts ease into the new funding model.

The issue has become one of he-said, she-said. Some legislators say the TPP reimbursement was always meant to be temporary – a way to help school districts ease into the new funding model.

Educators, however, say that’s a lie.

Further complicating the matter is the fact the TPP tax was eliminated about a decade ago, so, due to term limits, many of the legislators in-office at the time have since moved on.

“About every two years, we’ve had to come and fight for the TPP reimbursement,” Theroux said in Columbus. “What we’re asking for is a permanent fix. ... There was a promise that we would be made whole.”

Statewide, Mason City Schools would take the biggest cut over the two-year course of the budget, $3.6 million, according to preliminary projections.

Lakota is second, slated to lose $3.1 million, followed by Princeton, down $1.7 million.

Theroux explained that the state considers three criteria when considering the local capacity for generating revenue, and those criteria place Princeton in a vicious cycle.

“First, they consider how much you pay in taxes overall, compared to your area (Hamilton County in Princeton’s case),” Theroux said. “We’re not on the bottom, but we’re below mid-level in the amount of taxes we pay.

“Second is income. Princeton’s income is slightly below the average income in the area,” he said, “but we’re not on the bottom.

“Then there’s property value. Our property values are considered moderately wealthy,” Theroux said. “It’s not that we live wealthy lives, but we have a lot of business property that inflates the property values overall.

“Looking at these areas, our communities are expected to reimburse those lost funds through added tax levies.”

Princeton had already passed a 6.5 mill operating levy in 2012, to offset the losses from the TPP tax elimination, but it’s not enough, Theroux said.

“As a community with 80 percent of residents who either don’t have children or don’t send them to Princeton schools, they don’t understand the impact,” the interim superintendent said.

“Parents understand,” he said of Viking families. “If we don’t pass the levies, we cut programs, services and staff to meet our budget.

“It will decimate our education, which will affect their property values,” he said. “People won’t move into the school district if it isn’t doing well.”

Theroux said Princeton is looking for a permanent fix for the TPP reimbursement.

“We know there is no more TPP tax, and we know the CAT tax is generating $1.7 billion,” he said. “We also know it will take $480 million to make the 180 school districts whole.

“Take the money from that, and fix the problem permanently.”

The TPP tax used to come directly to the school districts. It never went to Columbus. The new Commercial Activity Tax, or CAT, goes to Columbus.

“They get to decide where they want to spend it,” Theroux said. “Really, it’s a local tax. It always has been, and the money should come back to us first, before it’s spent on other initiatives.”

The budget hearings started at 9 a.m. Thursday and continued well into the afternoon.

Representatives from Mason, Lakota and Sycamore schools were also on the docket to testify, and hearings are expected to continue Friday.

Rep. Alicia Reece, D-Cincinnati, said she has been “inundated” by calls and emails about TPP, and she’s open to working on an amendment that would fix the issue.

Any time more than 40 Cincinnatians make the trek to Columbus on a weekday, Reece said, it’s serious.